GPS Tracking for Delivery Companies: Use Cases and Benefits

February 22, 2023
6 min
GPS Tracking for Delivery Companies

Whilst GPS tracking is hardly the newest technology by today’s standards, there's little doubt that virtually any business can greatly benefit from using it. However, as we discovered, some will find it more useful than others; and such is definitely the case for delivery companies - from improving efficiency and profitability to security and precision, a GPS tracking system can be a game changer.

In view of COVID-19, online delivery services have been rapidly growing in popularity as more and more individuals want to have their food, electronics, or clothing delivered to their homes. And with greater demand come greater challenges - without the assistance of GPS tracking, delivery vehicles will find it almost impossible to fulfill their obligations and deliver the goods to clients swiftly and safely. In this article, we’re taking a look at how exactly package delivery services utilize said technology and what benefits they get to reap from doing so. 

How delivery services use GPS

We’ve already looked at how GPS works in general, and suffice to say, at the core of a GPS tracking system we have data - invaluable data that enables managers and drivers to make informed and calculated decisions. First, wireless transmission of the data takes place between a cloud service and the user's application. Then, users and drivers can use this data to map out and optimize routes, keep tabs on the fleet schedule, and act quickly if a technical issue occurs.

And what kind of data are we talking about? Generally speaking, with the help of GPS tracking, which provides a brilliant location management system, delivery firms can easily track vehicle activity, vehicle position, and delivery status. On top of that, businesses can conveniently track inventory, monitor its status and develop a smart warehouse system thanks to the deployment of these small devices.


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How GPS tracking improves delivery companies

Now let’s break down some of the most prominent benefits that come from supplying delivery trucks with a GPS tracking system.

gps tracking

  • Safer driving

It’s not unheard of for small or even medium-sized businesses to go bankrupt because of one big car accident-related lawsuit. Are you positive that your staff never drive recklessly in corporate delivery trucks? Even though you're not the one driving, you are still responsible for how your employees act while they're working for you and/or using one of your delivery vehicles. So you must think of how to improve safety, and luckily, the use of GPS tracking does encourage safer driving practices because your staff will be aware of them being monitored and will take fewer unnecessary gambles.

  • More accurate work-hour logging

One more obvious way that GPS tracking saves delivery business owners money - human negligence may cost you a lot of money if you rely on manual reporting of work hours. With GPS live tracking, you will reduce overreporting of hours and needless overtime pay by seeing how long each route actually takes.

  • Better fleet management

As GPS allows you to see where your driver is at any given time, you will better grasp how your driver's precise location may affect the rest of the day and when arrivals are anticipated. With you watching over the delivery trucks in real time, there’ll be no need for couriers to notify you if they’re experiencing a problem - being stuck in traffic for instance. Live ETAs can establish whether the driver is running late and put the solutions to those delays in your direct line of sight.

  • Improved reporting

GPS reports are crucial to package delivery services as they can wrap vital data into comprehensive packages, letting you analyze past orders and make adjustments for future ones. Such delivery quality metrics as the stops drivers make, traffic rule violations and customer feedback can be measured and with this data, you will have good insights on how your employees perform.

You can also track customer behavior; obtaining such data order frequency or delivery type - this will assist you to perform more efficient marketing activities.

  • Enhanced transparency

When a number of your drivers are running late, your incoming call traffic may increase because your clients' expectations weren't met and they were left in the dark. You may share a precise ETA based on GPS position data with your clients to decrease that friction and enhance customer experience. Third-party systems can be used to send alerts to share crucial updates, such as "driver is 15 minutes away." Your clients will definitely appreciate the openness and transparency you provide.

Cogniteq’s expertise in developing GPS apps

Our team has helped delivery businesses leverage the power of GPS tracking on more than one occasion. Most recently, we have developed an order management app for eateries - FullPlate. FullPlate served as a response to COVID-19 providing its users a safe way of ordering food from cafes and getting it delivered to their doorstep contact-free.

gps app dev

There were 2 sides to the application: the B2B side, intended for cafes, and the B2C side for customers. The B2B side is basically a web application that allows eateries to add their descriptions, update menus and prices, upload photos and reviews, and most crucially, manage user orders using real-time GPS insights.

As for B2C, we developed an application where users only need to input their current location into the system to see all dining options available in the area and all relevant information about them. Then they may make an order and choose the preferred way of food ordering, whether it’s no-contact home delivery, a take-out, or even booking a table. 


GPS-based solutions are here to stay, and for a good reason: the technology perfectly combines simplicity, reliability and versatility. And there’s hardly any industry that can utilize it better than delivery businesses. Offering huge amounts of critical data in real-time, GPS tracking enables companies to better manage their delivery trucks, make sure the employees drive safely and don’t overreport work hours, harness the power of detailed reports and make their activity fully transparent and open to customers. And if you wonder how to make GPS work for you, you’ll be well encouraged to get in touch with Cogniteq.


  • GPS delivery system: how it works

First, wireless transmission of important location-based data happens between a cloud service and a user app. Users and drivers can then utilize this information to organize and optimize routes, keep track of ETAs, and quickly respond to any possible technical problems.

  • How to use GPS for a delivery company?

The data that a GPS tracking system provides allows delivery company employees to make well-informed decisions by tracking truck activity, truck location, and order status. They may also track inventory as well as its status and build a smart warehouse system.